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IDENTIFYING AND MANAGING
WASTE IN PRODUCT
DEVELOPMENT
Ken Power
Do any of these sound familiar?
•  Discovering the same problems over and over again
•  Solving the same problems repeatedly
•  Discovering that the problem we thought we had
   was just a symptom
•  Teams are not performing to expectation (either
   managements or their own)
•  Things just seem to take too long to get done
•  There is a lot of churn
•  Defect rates are climbing
•  Feature velocity is falling over successive releases
•  People are feeling a general dissatisfaction and lack
   of fulfillment
About me
•  My day job
    §  Co-Founder, Agile Office at Cisco
    §  Internal Agile & Lean Consultant
•  Extra-curricular activities
    §  Fellow of the Lean Systems Society (http://LeanSystemsSociety.org/)
    §  Award-winning publications in Agile and Lean product development
    §  Frequent speaker at major international Agile and Lean conferences
    §  Involved in organizing international Agile and Lean conferences
    §  Industry/academic collaborative research on Agile and Lean software
    development
    §  Blog: http://SystemAgility.com/
    §  Twitter: @ken_power
“Eliminating waste is the most
fundamental lean principle, the one
  from which all the other principles
     follow. Thus, the first step to
 implementing lean development is
        learning to see waste.”

   (Poppendieck and Poppendieck 2003)
Defining Waste
•  Waste
   •  “Waste is anything that depletes resources of time,
      effort, space, or money without adding customer
      value.”
•  Unevenness
   •  Variability in Flow
•  Overburden
   •  “Unreasonableness”
Identifying and managing waste in software product development
•  Waste of overproduction.
7 Wastes of
TPS           •  Waste of time on hand
Ohno             (waiting).
Shiego
              •  Waste in transportation.
              •  Waste of processing itself.
              •  Waste of stock on hand
                 (inventory)
              •  Waste of movement.
              •  Waste of making defective
                 products.
Capacity and Efficiency

 Present Capacity = Work + Waste

 “True efficiency comes when
 we produce zero waste and
 bring the percentage of work
 to 100 percent”

            (Ohno 1988)
•  Overproduction.
8 Wastes of   •  Waiting (time on hand).
Lean
Liker         •  Unnecessary transport or
                 conveyance.
              •  Over-processing or incorrect
                 processing.
              •  Excess inventory.
              •  Unnecessary movement.
              •  Defects.
              •  Unused employee creativity.
Waste Type         Examples of Waste                                          Effects of Waste

Overproduction     •    Producing items for which there are no orders         •    Overstaffing; Storage costs;
                                                                                   Transportation costs
Waiting (time on   •    Workers watching an automated machine                 •    Worker time is wasted
hand)              •    Workers standing around waiting for the next
                        processing step, tool, supply part, etc.
                   •    Workers having no work because stock is out of
                        supply, delays in processing, equipment downtime,
                        or capacity bottlenecks
Unnecessary        •    Carrying work in progress long distances              •    Time is wasted
transport or       •    Creating inefficient transport
conveyance         •    Moving materials, parts or finished goods into or
                        out of storage or between processes
Over-processing    •    Unneeded extra steps to process parts                 •    Inefficiencies; Unnecessary work
or incorrect       •    Inefficient processes
processing         •    Providing higher quality than necessary
Excess inventory   •    Excess raw material                                   •    Production imbalance; Late deliveries
                   •    Excess Work In Progress (WIP)                              from suppliers; Defects; Equipment
                   •    Extra inventory                                            down time; Long setup time;
                                                                                   Obsolescence; Damaged goods; Excess
                                                                                   transportation costs; Excess Storage
                                                                                   Costs
Unnecessary        •    Any wasted motion employees have to perform in •           Excess time, delayed feedback, or
movement                the course of their work, e.g., looking for, reaching      opportunity for errors
                        for or stacking tools, parts, etc.
Defects            •    Production of defective parts                         •    Wasteful handling, time and effort
                   •    Correction of defective parts
                   •    Repair or rework; Scrap
                   •    Replacement production; Inspection
Unused employee    •    Not engaging with or listening to employees           •    Lost time, ideas, skills, improvements,
creativity                                                                         and learning opportunities
Wastes in Software Development
      The Seven Wastes of    The Seven Wastes of Software
         Manufacturing              Development

•  Inventory                •  Partially Done Work
•  Extra Processing         •  Extra Processes
•  Overproduction           •  Extra Features
•  Transportation           •  Task Switching
•  Waiting                  •  Waiting
•  Motion                   •  Motion
•  Defects                  •  Defects
Waste elimination and continuous
improvement applies even more to
   high-performing teams and
          organizations
Identifying and managing waste in software product development
Waste comes back
20 years later, it’s striking to me how much effort we’ve expended on eliminating
muda (waste) and how little attention we have given to mura (unevenness) and
muri (overburden).

In short, unevenness and overburden are now the root causes of
waste in many organizations. Even worse they put
                                  waste back
that managers and operations teams have just
eliminated.
I have … advice for managers — especially senior managers — trying to create
lean businesses: Take a careful look at your mura and your muri as you start to
tackle your muda.”


        James Womack, “Mura, Muri, Muda?” in Gemba Walks
keepingitkleen.com




                     blog.fundingfactory.com
Hierarchy of Waste Management




http://www.envirocentre.ie/
Challenges
•  Agreeing what is “waste”
•  Visualize Waste
•  Quantify the effects and impacts of Waste
   •  E.g., Technical Debt, Quality Debt
•  Quantify the (perceived improvements) of managing the
   Wastes
•  Seeing the whole – Systems Thinking
•  Avoiding local sub-optimization
•  Some focus on Muda
  •  Little focus on the effects of
    •  Mura (unevenness in operations)
    •  Muri (overburdening of people and equipment)
Identify Wastes


Understand the                           Initial
‘After’ scenario                     understanding




Manage                                     Prioritize




            Create a
                                 Select
           hypothesis
Identifying Wastes using Games
                               Keep Doing
                                                              Do Less Of
                                       !
                                       !
                                       !
                                       !
                                       !
                                       !
                                       !
                                       !
                                       !
                                       !
                                       !


                                                                           Do More Of




                             Things to Try




                                                                       !




                                             Stop Doing




http://innovationgames.com
                                                          http://skycoach.be/
PDSA
•  Follows the steps of the
 Scientific Method                     Act    Plan
  •  Plan: develop a hypothesis or
     experiment
  •  Do: conduct the experiment
  •  Study: collect measurements
  •  Act: interpret the results and
     take appropriate action
•  Also known as                      Study   Do
   •  PDCA
   •  The Deming Cycle
   •  The Shewart Cycle
Value Stream Mapping
A3 Management
Focus                      Problem Solving              Proposal Writing             Project Status Review

Thematic content or        Improvements related to      Policies, decisions, or      Summary of changes
focus                      quality, cost, delivery,     projects with significant    and results as an
                           safety, productivity, etc.   investment or                outcome of either
                                                        implementation               problem solving or
                                                                                     proposal implementation


Tenure of person           Novice, but continuing       Experienced personnel;       Both novice and more
conducting the work        throughout career            managers                     experienced managers
Analysis                   Strong root-cause            Improvement based on         Less analysis and more
                           emphasis; quantitative/      considering current          focus on verification of
                           analytical                   state; mix of quantitative   hypothesis and action
                                                        and qualitative              items
PDCA cycle                 Document full PDCA           Heavy focus on the Plan      Heavy focus on the
                           cycle involved in making     step, with Check and Act     Check and Act steps,
                           an improvement and           steps embedded in the        including confirmation of
                           verifying the result         implementation plan          results and follow-up to
                                                                                     complete the learning
                                                                                     loop
  From Table 5.1 from “Understanding A3 Thinking”
John Clifford, Construx
http://forums.construx.com/blogs/johnclif/archive/2009/09/30/if-you-want-to-improve-stop-managing-your-problems.aspx
Identifying and managing waste in software product development
Waste            Waste            Description     Relative         #               Value             Trigger Date,   Relative         Relative
Example          Category                         Importance       Stakeholders                      by which the    value for        value for
                                                                   affected                          waste must      managing         managing
                                                                                                     be              this waste       this waste
                                                                                                     eliminated      vs. other        vs. other
                                                                                                                     wastes           Project work
Compile and      Waiting          It can take     We are losing    42 Devs, 12     50+ people        Release 4.5.1   This will help   This will
Build times                       15-30           nearly 20        QA (directly    will have less    in August       reduce           ultimately
take too long                     minutes to      person-hours     affected –      frustration       2012            feedback         help us go
                                  run a full      per day          others are      waiting for                       loops and        faster with
                                  build,          across the       indirectly      long build                        encourage        other project
                                  depending on    entire team.     affected)       cycles;                           more use of      work
                                  the machine                                      Shorter build                     TDD, leading
                                                                                   cycles                            to higher
                                                                                   encourage                         quality, fewer
                                                                                   more frequent                     integration
                                                                                   integration …                     errors, fewer
                                                                                                                     defects
Team spends      Partially Done   Engineers,      We are not       8 Devs, 3 QA,   The entire
time working     Work             designers and   doing            2 Eng Mgr, 2    team can
on features                       others are      sufficient due   Product Mgr     spend more
that get                          putting         diligence on                     time focusing
dropped                           significant     some                             on delivering
                                  effort into     features. We                     features we
                                  features that   need to get                      will ship with.
                                  get dropped     better at
                                  later.          defining our
                                                  Minimal
                                                  Viable Offer.
Duplication of   Extra            Functional      Duplicated       4 Eng. Mgr, 1
status and       Processes        lines are       effort and       Program Mgr,
progress                          managing        danger of        3 Team Leads
reporting                         own reporting   mixed
                                                  message
Resolving        Defects
defects in
complex
product
dependency
chains
Effective Retrospectives
•  One of the top 10
   reasons that Agile
   projects fail is poor use
   of retrospectives
•  Your opportunity to
   Inspect and Adapt
•  Foster organization
   learning
                                               Org
     People        Team        Management
                                            Leadership
Problem Solving Teams in Action
Keep it Visible
SOME LESSONS
LEARNED
Getting Ready and Done

Definition of Done and
Definition of Ready act as
social contracts in agile teams.

Together, they provide a
boundary that stabilizes the
team’s working environment,
prevents waste (time, delays,
churn, working on the wrong
things), and avoids the            Let nothing into a Sprint (or
accumulation of technical debt     Timebox) that is not Ready; Let
and quality debt.                  nothing out that is not Done
Planned     Ready                In Progress   Done   Accepted
                  (5)
            This is our Ready
            policy. Thanks for
                 reading.




                                                                           Apply WIP Limits to the
                                                                             Ready Queue too




                                                              Explicit Policies:
            We have prepared the                            Definition of Ready is a
           Work Item, and the Work                               good fit here
          Item is ready to be pulled
                in by the team
Waste and Software Debt

                                              Features&
                                              Technical&Debt&
                                              Quality&Debt&




Release&1& Release&2& Release&3& Release&4&
                                                                                                    Features&

   “Technical Debt Is Now                                                                           Technical&Debt&

 Costing Us $3.61 Per Line Of                                                                       Quality&Debt&

            Code”
                               - CAST Study


                                                   Release&1& Release&2& Release&3& Release&4&

                                                                          Power, Ken. “Product Ownership Challenges.”
Types of Debt
•  Technical
•  Environment
•  Skills
•  Planning
•  Architecture
Waste and Flow

“The Principle of Queuing Waste:
Queues are the root cause of the
majority of economic waste in
product development”
                 (Reinertsen, 2009).
Kanban helps visualize and control waste

“kanban systems offer deferred commitment,
control of variability in flow, elimination of
over-burdening, reduction of multi- tasking,
and better alignment with high level risk
management decisions regarding allocation of
supply against various competing demands”
                               (Anderson, 2012)
            What Kanban Coaches do and don’t do




          http://agilemanagement.net/index.php/Blog/what_kanban_coaches_do_and_dont_do/
The Life of a User Story
Planned   Ready                In Progress              Done   Accepted
  (10)     (5)                      (7)
          This is our Ready        This is our Ready
          policy. Thanks for       policy. Thanks for
               reading.                 reading.




    A single “In Progress” queue is not always
        sufficient to see what is happening
The Life of a User Story
Planned   Ready                     In Progress                     Done   Accepted
  (10)     (5)

                  Analysis Design Design Coding Code Test  SCM
                                  Review        Review    Updates
                    (2)             (1)   (2)     (2)       (1)
Consider Team Effectiveness
Identifying and managing waste in software product development
What would Deming say?
“In my experience, most troubles and
  most possibilities for improvement
add up to proportions something like
                  this:
    94% belong to the System (the
    responsibility of management)
    6% belong to Special Causes”
Optimize on the People who add Value

“Almost every organization claims it’s
people are important, but if they truly
optimize their structures on those who add
value, they would be able to say:”
For all our vaunted efficiency in the making of
things, our economy is still incredibly wasteful.
This waste comes not from the inefficient
organization of work but rather from working on
the wrong things – and on an industrial scale. …
It is hard to come by a solid estimate of just how
wasteful modern work is.”



 •  Eric Ries, The Lean Startup. (page 274)
Summary
•  There is waste in every                    •  Use these techniques as
 system                                        part of your Continuous
  •  Learn to see it                           Improvement (Kaizen)
  •  Eliminate it (or at least get it under    efforts
    control)
                                                •  Release or Iteration Retrospectives
•  Develop people to be                              are a great forum
   Problem Solvers                              •    Dedicated Problem Solving
                                                     Sessions
•  You can have fun finding                     •    Continuous Improvement Circles
   and eliminating waste                        •    Strategy Sessions
  •  use serious games at work                  •    Portfolio Management Sessions
                                                •    Whenever you encounter a
                                                     problem
                                              •  Keep it Visible
Thank You!

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Identifying and managing waste in software product development

  • 1. IDENTIFYING AND MANAGING WASTE IN PRODUCT DEVELOPMENT Ken Power
  • 2. Do any of these sound familiar? •  Discovering the same problems over and over again •  Solving the same problems repeatedly •  Discovering that the problem we thought we had was just a symptom •  Teams are not performing to expectation (either managements or their own) •  Things just seem to take too long to get done •  There is a lot of churn •  Defect rates are climbing •  Feature velocity is falling over successive releases •  People are feeling a general dissatisfaction and lack of fulfillment
  • 3. About me •  My day job §  Co-Founder, Agile Office at Cisco §  Internal Agile & Lean Consultant •  Extra-curricular activities §  Fellow of the Lean Systems Society (http://LeanSystemsSociety.org/) §  Award-winning publications in Agile and Lean product development §  Frequent speaker at major international Agile and Lean conferences §  Involved in organizing international Agile and Lean conferences §  Industry/academic collaborative research on Agile and Lean software development §  Blog: http://SystemAgility.com/ §  Twitter: @ken_power
  • 4. “Eliminating waste is the most fundamental lean principle, the one from which all the other principles follow. Thus, the first step to implementing lean development is learning to see waste.” (Poppendieck and Poppendieck 2003)
  • 5. Defining Waste •  Waste •  “Waste is anything that depletes resources of time, effort, space, or money without adding customer value.” •  Unevenness •  Variability in Flow •  Overburden •  “Unreasonableness”
  • 7. •  Waste of overproduction. 7 Wastes of TPS •  Waste of time on hand Ohno (waiting). Shiego •  Waste in transportation. •  Waste of processing itself. •  Waste of stock on hand (inventory) •  Waste of movement. •  Waste of making defective products.
  • 8. Capacity and Efficiency Present Capacity = Work + Waste “True efficiency comes when we produce zero waste and bring the percentage of work to 100 percent” (Ohno 1988)
  • 9. •  Overproduction. 8 Wastes of •  Waiting (time on hand). Lean Liker •  Unnecessary transport or conveyance. •  Over-processing or incorrect processing. •  Excess inventory. •  Unnecessary movement. •  Defects. •  Unused employee creativity.
  • 10. Waste Type Examples of Waste Effects of Waste Overproduction •  Producing items for which there are no orders •  Overstaffing; Storage costs; Transportation costs Waiting (time on •  Workers watching an automated machine •  Worker time is wasted hand) •  Workers standing around waiting for the next processing step, tool, supply part, etc. •  Workers having no work because stock is out of supply, delays in processing, equipment downtime, or capacity bottlenecks Unnecessary •  Carrying work in progress long distances •  Time is wasted transport or •  Creating inefficient transport conveyance •  Moving materials, parts or finished goods into or out of storage or between processes Over-processing •  Unneeded extra steps to process parts •  Inefficiencies; Unnecessary work or incorrect •  Inefficient processes processing •  Providing higher quality than necessary Excess inventory •  Excess raw material •  Production imbalance; Late deliveries •  Excess Work In Progress (WIP) from suppliers; Defects; Equipment •  Extra inventory down time; Long setup time; Obsolescence; Damaged goods; Excess transportation costs; Excess Storage Costs Unnecessary •  Any wasted motion employees have to perform in •  Excess time, delayed feedback, or movement the course of their work, e.g., looking for, reaching opportunity for errors for or stacking tools, parts, etc. Defects •  Production of defective parts •  Wasteful handling, time and effort •  Correction of defective parts •  Repair or rework; Scrap •  Replacement production; Inspection Unused employee •  Not engaging with or listening to employees •  Lost time, ideas, skills, improvements, creativity and learning opportunities
  • 11. Wastes in Software Development The Seven Wastes of The Seven Wastes of Software Manufacturing Development •  Inventory •  Partially Done Work •  Extra Processing •  Extra Processes •  Overproduction •  Extra Features •  Transportation •  Task Switching •  Waiting •  Waiting •  Motion •  Motion •  Defects •  Defects
  • 12. Waste elimination and continuous improvement applies even more to high-performing teams and organizations
  • 14. Waste comes back 20 years later, it’s striking to me how much effort we’ve expended on eliminating muda (waste) and how little attention we have given to mura (unevenness) and muri (overburden). In short, unevenness and overburden are now the root causes of waste in many organizations. Even worse they put waste back that managers and operations teams have just eliminated. I have … advice for managers — especially senior managers — trying to create lean businesses: Take a careful look at your mura and your muri as you start to tackle your muda.” James Womack, “Mura, Muri, Muda?” in Gemba Walks
  • 15. keepingitkleen.com blog.fundingfactory.com
  • 16. Hierarchy of Waste Management http://www.envirocentre.ie/
  • 17. Challenges •  Agreeing what is “waste” •  Visualize Waste •  Quantify the effects and impacts of Waste •  E.g., Technical Debt, Quality Debt •  Quantify the (perceived improvements) of managing the Wastes •  Seeing the whole – Systems Thinking •  Avoiding local sub-optimization •  Some focus on Muda •  Little focus on the effects of •  Mura (unevenness in operations) •  Muri (overburdening of people and equipment)
  • 18. Identify Wastes Understand the Initial ‘After’ scenario understanding Manage Prioritize Create a Select hypothesis
  • 19. Identifying Wastes using Games Keep Doing Do Less Of ! ! ! ! ! ! ! ! ! ! ! Do More Of Things to Try ! Stop Doing http://innovationgames.com http://skycoach.be/
  • 20. PDSA •  Follows the steps of the Scientific Method Act Plan •  Plan: develop a hypothesis or experiment •  Do: conduct the experiment •  Study: collect measurements •  Act: interpret the results and take appropriate action •  Also known as Study Do •  PDCA •  The Deming Cycle •  The Shewart Cycle
  • 22. A3 Management Focus Problem Solving Proposal Writing Project Status Review Thematic content or Improvements related to Policies, decisions, or Summary of changes focus quality, cost, delivery, projects with significant and results as an safety, productivity, etc. investment or outcome of either implementation problem solving or proposal implementation Tenure of person Novice, but continuing Experienced personnel; Both novice and more conducting the work throughout career managers experienced managers Analysis Strong root-cause Improvement based on Less analysis and more emphasis; quantitative/ considering current focus on verification of analytical state; mix of quantitative hypothesis and action and qualitative items PDCA cycle Document full PDCA Heavy focus on the Plan Heavy focus on the cycle involved in making step, with Check and Act Check and Act steps, an improvement and steps embedded in the including confirmation of verifying the result implementation plan results and follow-up to complete the learning loop From Table 5.1 from “Understanding A3 Thinking”
  • 25. Waste Waste Description Relative # Value Trigger Date, Relative Relative Example Category Importance Stakeholders by which the value for value for affected waste must managing managing be this waste this waste eliminated vs. other vs. other wastes Project work Compile and Waiting It can take We are losing 42 Devs, 12 50+ people Release 4.5.1 This will help This will Build times 15-30 nearly 20 QA (directly will have less in August reduce ultimately take too long minutes to person-hours affected – frustration 2012 feedback help us go run a full per day others are waiting for loops and faster with build, across the indirectly long build encourage other project depending on entire team. affected) cycles; more use of work the machine Shorter build TDD, leading cycles to higher encourage quality, fewer more frequent integration integration … errors, fewer defects Team spends Partially Done Engineers, We are not 8 Devs, 3 QA, The entire time working Work designers and doing 2 Eng Mgr, 2 team can on features others are sufficient due Product Mgr spend more that get putting diligence on time focusing dropped significant some on delivering effort into features. We features we features that need to get will ship with. get dropped better at later. defining our Minimal Viable Offer. Duplication of Extra Functional Duplicated 4 Eng. Mgr, 1 status and Processes lines are effort and Program Mgr, progress managing danger of 3 Team Leads reporting own reporting mixed message Resolving Defects defects in complex product dependency chains
  • 26. Effective Retrospectives •  One of the top 10 reasons that Agile projects fail is poor use of retrospectives •  Your opportunity to Inspect and Adapt •  Foster organization learning Org People Team Management Leadership
  • 30. Getting Ready and Done Definition of Done and Definition of Ready act as social contracts in agile teams. Together, they provide a boundary that stabilizes the team’s working environment, prevents waste (time, delays, churn, working on the wrong things), and avoids the Let nothing into a Sprint (or accumulation of technical debt Timebox) that is not Ready; Let and quality debt. nothing out that is not Done
  • 31. Planned Ready In Progress Done Accepted (5) This is our Ready policy. Thanks for reading. Apply WIP Limits to the Ready Queue too Explicit Policies: We have prepared the Definition of Ready is a Work Item, and the Work good fit here Item is ready to be pulled in by the team
  • 32. Waste and Software Debt Features& Technical&Debt& Quality&Debt& Release&1& Release&2& Release&3& Release&4& Features& “Technical Debt Is Now Technical&Debt& Costing Us $3.61 Per Line Of Quality&Debt& Code” - CAST Study Release&1& Release&2& Release&3& Release&4& Power, Ken. “Product Ownership Challenges.”
  • 33. Types of Debt •  Technical •  Environment •  Skills •  Planning •  Architecture
  • 34. Waste and Flow “The Principle of Queuing Waste: Queues are the root cause of the majority of economic waste in product development” (Reinertsen, 2009).
  • 35. Kanban helps visualize and control waste “kanban systems offer deferred commitment, control of variability in flow, elimination of over-burdening, reduction of multi- tasking, and better alignment with high level risk management decisions regarding allocation of supply against various competing demands” (Anderson, 2012) What Kanban Coaches do and don’t do http://agilemanagement.net/index.php/Blog/what_kanban_coaches_do_and_dont_do/
  • 36. The Life of a User Story Planned Ready In Progress Done Accepted (10) (5) (7) This is our Ready This is our Ready policy. Thanks for policy. Thanks for reading. reading. A single “In Progress” queue is not always sufficient to see what is happening
  • 37. The Life of a User Story Planned Ready In Progress Done Accepted (10) (5) Analysis Design Design Coding Code Test SCM Review Review Updates (2) (1) (2) (2) (1)
  • 40. What would Deming say? “In my experience, most troubles and most possibilities for improvement add up to proportions something like this: 94% belong to the System (the responsibility of management) 6% belong to Special Causes”
  • 41. Optimize on the People who add Value “Almost every organization claims it’s people are important, but if they truly optimize their structures on those who add value, they would be able to say:”
  • 42. For all our vaunted efficiency in the making of things, our economy is still incredibly wasteful. This waste comes not from the inefficient organization of work but rather from working on the wrong things – and on an industrial scale. … It is hard to come by a solid estimate of just how wasteful modern work is.” •  Eric Ries, The Lean Startup. (page 274)
  • 43. Summary •  There is waste in every •  Use these techniques as system part of your Continuous •  Learn to see it Improvement (Kaizen) •  Eliminate it (or at least get it under efforts control) •  Release or Iteration Retrospectives •  Develop people to be are a great forum Problem Solvers •  Dedicated Problem Solving Sessions •  You can have fun finding •  Continuous Improvement Circles and eliminating waste •  Strategy Sessions •  use serious games at work •  Portfolio Management Sessions •  Whenever you encounter a problem •  Keep it Visible